The Brutal Truth About Asian Branding E-Book

Joseph Baladi

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 466

Veröffentlichungsjahr: 2011

Beschreibung

"This is one of the most thoughtful books on branding I've come across. Most such books are either quickly-crafted "how-to" books or academic tomes over-burdened with references. This book is thoughtful because it raises questions which deal with the 'why' rather than just 'how' of branding. The reference to brutal truth as the truth which will set us free--to examine ourselves without self-illusions--is liberating. The notion that Asia has many good, but no great brands, is also not a put-down but a clarion call for Asian CEOs to rise to the challenge and create lasting, meaningful, committed brands." --Ho Kwon Ping, Chairman/CEO; Banyan Tree and Board of Trustees, SMU; 2010 recipient of the "Lifetime Achievement Award" by the American Creativity Association "A cold shower to wake people up. Joe Baladi's Brand Blueprint is a great tool for anyone involved in Sovereign Relationship Marketing or brand building anywhere." --Timothy Love, Vice Chairman; Chief Executive Officer, Omnicom APIMA "There are many books about branding but few address Asian companies directly. Joe Baladi has been one of the loudest voices to advocate strong branding practices to Asian companies determined to outperform their competitors. The Brutal Truth About Asian Branding is a timely book that all Asian CEOs with global aspirations should read." --Richard Eu, Group CEO, Eu Yan Sang International "The Brutal Truth About Asian Branding is the first book that connects branding frameworks to the realities of operating in Asia. It offers a very straightforward perspective on the challenges Asian CEOs face as they build their businesses and their brands, and perhaps the most compelling part of the book is the passionate plea for how Asian CEOs should be thinking different about branding. In true Baladi style, it is straight from the heart." --Maarten Kelder, Managing Partner (Asia), Monitor Group "A very interesting and valuable perspective on Asian branding... one that decision makers in the region should read and embrace. Well done Joe!" --Ron Sim, Founder & CEO, OSIM International "Brands mean Business, anywhere in the world! The focus on Asia, at this time, is natural since the developing nations of the region did so much to help the world recover from the global 2008 economic crisis. Baladi's text is timely; it is thoughtful and thought-provoking; putting people and brands center stage with practical insights borne of his breadth of personal experience at the frontline." --Chris D. Beaumont, Professor, Tokyo University, Global Centre of Excellence; Director, North Asia, Results International "The brutal truth is that Joe Baladi is right. Asian CEOs must learn the brand skills used so successfully in the rest of the world. It will take a big change in mentality, but the rewards will be vast. This book is a great start to that revolution." --Michael Newman, Author, 22 Irrefutable Laws of Advertising

Leseprobe

CONTENTS

Introduction

Chapter 1: A Time of Profound Change

The Old World Order

The New World Order

The Rest of Asia

Toll-Gates and vision

Notes

Chapter 2: Five Reasons Why There are Very Few Great Asian Brands

Myopic CEO Leadership

Corporate Culture is by Default, rather than by Design

Charlatan Brand Practitioners

Performance of Government Agencies

Advertising Agencies’ Lack of Branding Competencies

Conclusion

Notes

Chapter 3: Redefining Brand, Branding, and Advertising

Brand and Branding: Thinking Differently

Branding Made Easy: The People Analogy

The Brand Blueprint

The Brand Proposition

The Relationship between Branding and Advertising

Notes

Chapter 4: Pre-Branding

Overview of the Business and Branding Flowchart

Business Goals and Business Strategy

The Role of Corporate Guiding Principles

Charting the Road to a Successful Business

Notes

Chapter 5: Brand Strategy

If You Don’t Make a Choice, the Choice Makes You

Differentiation

Emotional Dimension

Focused Target Audience

Ability to Innovate and Stay Relevant

CEO Involvement and Leadership

Employee Involvement and Commitment

Intelligent Brand Architecture

CSR: The New Branding Imperative

Summary

Notes

Chapter 6: Methodology instead of Mythology

Positioning or Repositioning?

Preparing for a (Positioning or Repositioning) Branding Project

The Strategy-Centric Brand Development Methodology

Costing the Project Proposal

Notes

Chapter 7: Brand into Action: Delivering against Your Promise

Be Careful What You Promise

Making the Brand Come Alive

Summary

Notes

Chapter 8: Conclusion

The Future is Here

Caught up in a Good Thing

The Asian/Chinese Century

Everything is Connected; the Rest is Conceptual

Summary: Tomorrow’s Asian CEO Today

Notes

Index

Copyright © 2011 Joseph Baladi

Published in 2011 by John Wiley & Sons (Asia) Pte. Ltd.

2 Clementi Loop, #02-01, Singapore 129809

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Library of Congress Cataloging-in-Publication Data

ISBN 978–0–470–82647–8 (Hardback)

ISBN 978–0–470–82649-2 (ePDF)

ISBN 978–0–470–82648-5 (Mobi)

ISBN 978–0–470–82650–8 (ePub)

To my mother and father, who sacrificed so that I might find opportunity.

INTRODUCTION

While the development and growth of much of Asia over the past two decades has been nothing short of spectacular, much of this has come not from the emergence and contribution of great Asian brands, but in spite of their absence. In fact, with the notable exception of one or two brands, a very persuasive argument can be made that no great Asian brands (excluding Japanese brands, as explained in Chapter 2) exist—at least not as measured by consumer surveys in Asian capital cities, where Western brands are preferred by eight out of ten Asian consumers.

Asian brands continue to languish as a result of lack of differentiation, innovation, and consistency. In a 2009 Newsweek cover story (the headline for which inferred that there are as yet no Chinese global brands), Premier Wen Jiabao was reported to have called for China “to create companies that can innovate and churn out ‘brand-name export products’—meaning companies with reputations for quality, innovation, and service so strong that customers are willing to pay a premium for their products.”1 Currently, Asian consumers are willing to pay a premium only for the likes of Apple, BMW, Omega, and similar Western brands that provide not only the security of implicit guaranteed quality, but also the unique emotional dimensions that create personal and bonding resonance.

The inability of Asian brands to graduate from good to great has been a particularly pernicious and persistent obstacle to companies across the region in their efforts to move up the value chain and provide brands of desire. A big part of that problem is the inability—and in some cases, unwillingness—of brand owners to face the reality of rapidly changing market and consumer landscapes precisely at a time that demands creativity and innovativeness.

That a problem with Asian brands even exists will be contested by those who argue that economic power is shifting from the West to Asia—and to China, in particular. Putting aside the argument that much of the economic power that is underwriting this paradigm shift comes from business-to-business (B2B) activity, rather than from the creation of compelling consumer brands, it is almost certain that a transition of power and influence to the East has commenced. Chapter 1 of this book questions what form that shift will take, and how sustainable it might prove to be. At the heart of the issue is the question: Will that momentous transition remain purely economic, or will it also be cultural?

The vehicle that delivered the cultural impact of the “American Century” (i.e. the 20th century) was the great American brand. Brands such as Levi’s, Colgate, Pampers, and Mustang offered ever-improving functional attributes that delivered on product purpose, combined with emotional cues that went on to inspire and define generations of global consumers. The obvious question that emerges is: How effective (how cultural) will be the current transition of the world order from West to East in the absence of great Asian brands?

Chapter 2 attempts to answer this question by exploring five key reasons for the lack of development of Asian brands in general, and great Asian brands in particular. A central theme of that chapter, and indeed of the entire book, is the behavior, attitudes, and roles of Asian chief executive officers (CEOs) in regards to the branding process.

“THE GOVERNMENT KNOWS BEST”

Soon after I arrived in Singapore in 2002, I joined the tail end of a nine-month nation-branding project headed by a very senior government official. The brand positioning statement had been crafted and was making the rounds of ministers and other important government officials for their comments. I began to feel very troubled when the requests to rewrite and revise the statement kept coming in. When I explained to the head official why it was unwise to fundamentally change a positioning that had been crafted as a result of nine months of research, analysis, and workshops, she replied: “The government knows best.” Her certainty and conviction were absolute, and it was obvious from her expression that she wouldn’t budge from her position. I was stunned.

I have since witnessed that same mentality play out in the private sector across Asia, where—instead of the government—it is the CEO who knows best. The traditional hierarchical management structure that still characterizes most Asian companies has impeded, in some measure, the creation and sustainability of competitive advantage. Where the CEO rules absolutely, creativity and innovation falter. Where the CEO considers himself an oracle of knowledge, very few dare to question, contradict, or even offer an opinion. Where the CEO seeks validation, most will rush to agree with him and offer reassurance. Where brand is the catalyst and branding the process that determines the very flavor of a company, most Asian CEOs are settling for vanilla.

These ingrained attitudes of CEOs are, then, a major impediment to effecting management change; however, another important contributor to the slow development of Asian brands is, simply, CEOs’ lack of knowledge about how the process of branding works and how pervasive it needs to be in the DNA of the organization. This situation is made even more complicated when CEOs don’t know what they don’t know. In as much as brand and branding are concerned, the existence of this “condition” creates a ripple effect that can grow to momentous proportions. The consequences for the organization are widespread, both internally and in terms of its external relationships with consumers and customers. This powerful chain reaction can manifest itself either positively or negatively. In other words, branding within the organization can literally be all about vicious or virtual cycles.

Better appreciation of the strengths and benefits of a robust branding infrastructure starts with a better understanding of key fundamental constructs. Chapter 3 provides an introduction to strategic platforms that are indispensable to managers about to embark on branding initiatives or programs within their companies.

For those companies actively considering branding projects, Chapter 4 identifies two essential pre-branding steps that are entirely strategic in nature: formulation of the company’s business strategy and guiding principles. Given their importance, it is extraordinary how often they are misunderstood, underutilized, or simply ignored.

Chapter 5 identifies and discusses eight essential brand strategy drivers. Though not exhaustive, these drivers are the critical pillars that support all companies. They represent the building blocks that collectively contribute to the formation of strong and relevant brands. Because everything in branding is connected, the absence of even one of these elements will seriously undermine the structural integrity of any brand-building program.

Chapter 6 examines the phases of a typical “full-bodied” strategy-driven, brand development methodology. An understanding of the process and each of these phases provides the CEO and his or her team with one invaluable skill: the ability to properly assess branding project proposals. Proposals define the direction of the project. They must, therefore, reflect the correct and optimum scope items, as well as address the specific needs or circumstances of the company. Beyond providing decision makers with a more effective platform from which to make decisions, they will also be better equipped to estimate the realistic costs required to complete the project.

While this book is devoted mostly to revealing the systemic weaknesses that undermine the emergence of strong Asian global brands and provides a comprehensive road map for overcoming these, Chapter 7 goes a step further and discusses a common Achilles heel endemic to many Asian companies: implementation. In reality, branding projects consist of two stages. The first is the brand development process; the second is implementation. Without implementation, any effort companies make to review, revise, or change their positioning will be for naught. This chapter also makes the point that it is equally important that the brand promise delivers to another key stakeholder: the company’s own employees.

The Brutal Truth About Asian Branding aims to reveal the reality of Asian branding—warts and all, and to provide a prescriptive road map that will align Asian brands with what they are destined to become: great and defining. Chapter 8 argues that, although presently largely dormant, there is greatness in Asian brands; and that the near future will be characterized by major change and will be championed by a phalanx of exceptional Asian leaders who are willing to experiment and challenge the conventional. These first of many will lead by example and demonstrate, through the success of their own companies, the kind of heights Asian brands are capable of reaching.

It is only by first identifying what is wrong, that the process of building great brands can begin in earnest. Currently, branding efforts by Asian companies are largely a haphazard, hit-or-miss affair. This is preventing Asian brand development from reaching critical mass. What is needed to successfully effect change is executive education coupled with courage (to do things differently). The goal of this book is to shine a light on the current face of Asian branding so that CEOs can see it clearly and objectively, and thereby make informed choices about where to go from here.

While Asia’s current crop of CEOs are part of the problem that is holding back the development of great Asian brands, there are exceptions—maverick leaders who are materializing in individual markets and demonstrating that new thinking can deliver spectacular successes. These trailblazers will emerge as important catalysts for change.

There is spectacular greatness locked up in Asian brands. Empty talk and misconceptions will not unlock their promise. Only brutal truth will.

NOTE

1. Craig Simons, “Name a Global Brand that is Chinese. Can’t Do It? Here’s Why,” Newsweek, July 27, 2009.

CHAPTER 1

A TIME OF PROFOUND CHANGE

“America’s financial strength helped it export its entertainment and culture. Now an emerging 400 million-strong Indian consumer market, as well as an economically vibrant Asia, is shifting consumer power to the region. It’s now our time to make our culture the prime culture of the world. The time for Bollywood is now.”

Bollywood producer, Shehar Kapur1

THE OLD WORLD ORDER

I was born in the second half of the 20th century. I spent the first 10 years of my life in Brazil—what was then, and to some degree remains today, a developing (if not an emerging) country. Although I was only young when my family and I departed, I have clear memories—of sights, smells, and sounds—of that early childhood. I was profoundly influenced by Brazil’s culture.

I spent the next 10 years in Australia: culturally a place that, in the 1970s, was on a different planet from Brazil. Even seeing it through the eyes of a child, the differences were startling; however, I could also see the similarities. Those similarities, I would later realize, formed the foundation of an overarching universal culture that was as much part of the Australian experience as it was of the Brazilian one, and much of the rest of the world. That culture was Western. The television shows we watched, the movies we went to see, the music I heard in the background as a child and later chose to listen to as an adult, the literature that was read to me and which I later read for myself, the clothes I wore, as well as the things that I eventually grew to believe were “right” or appropriate, were all heavily influenced by the West, and especially by America. I didn’t know it then, but I was living in the “American Century,” when the world took its cue for almost everything from that country.

How that came to be is the result of a combination of a multitude of factors, starting with the largesse of the Marshall Plan following the end of the Second World War and extending into the decades that followed through the sheer ingenuity, energy, enthusiasm, and mentality of American leadership, American business, and the American people. This is not to say that a master plan existed, or that there was some sort of engineered or premeditated Western or American altruism that fueled the effort that mended and rebuilt the world in the latter part of the 20th century. But as we look back through the lens of history, the facts do provide abundant evidence that the culture and values that America championed were, by and large, embraced by people all over the world.

The single, most profound thing American businessmen figured out a long time ago was that brands fundamentally people.